SBI Q2 results: Profit soars 28% YoY to Rs 18,331 crore; stock falls 3%

SBI Q2 results: SBI share price fell 2.9 per cent to Rs 834 per share on the BSE after the announcement of Q2 results 2024

SBI Q2 results 2024: India's biggest public sector lender State Bank of India (SBI), on Friday, reported a 28 per cent year-on-year (Y-o-Y) surge in standalone net profit at Rs 18,331.4 crore in the July-September quarter of the current financial year (Q2 FY25). The number beat Street estimates by a wide margin, which had estimated a net profit rise of 10-17 per cent Y-o-Y.

 

In the September quarter of the previous year (Q2 FY24), SBI had reported a net profit of Rs 14,33.03 crore. Meanwhile, on a sequential basis, SBI's Q2 profit rose 7.6 per cent from Rs 17,035.16 crore. 

 

 

Operationally, SBI's net interest income, which is the income from interest earned less expended, came in at Rs 41,620 crore for the quarter under review, as against a NII of Rs 39,500 crore in Q2 FY24, clocking a Y-o-Y growth of 5.3 per cent. Over the April - June quarter of the current year (Q1 FY25), the NII was nearly unchanged versus Rs 41,125.5 crore quarter-on-quarter (Q-o-Q).

 

The lender's net interest margin (NIM), however, compressed by 16 basis points (bps) Y-o-y and 8 bps Q-o-Q to 3.27 per cent in Q2 FY25. NIM was 3.43 per cent and 3.35 per cent in Q2 FY24 and Q1 FY25, respectively. 

 

"Whole Bank and Domestic NIM for the half year (H1 FY25) stand at 3.18 per cent and 3.31 per cent,  respectively. Whole Bank NIM for Q2 FY25 is at 3.14 per cent and Domestic NIM is at 3.27 per cent," the bank said in a statement.

 

On the bourses, SBI share price fell 2.9 per cent to Rs 834.3 per share on the BSE in the intraday trade. By comparison, the BSE Sensex index was down 144 points or 0.18 per cent at 2:34 PM.

 

SBI Q2 loans and deposits

According to SBI's financial statement, SBI's Q2 loan book (gross advances) climbed 14.9 per cent Y-o-Y and 2.85 per cent Q-o-Q to Rs 39.2 trillion. 

 

Within this, domestic corporate loans grew 18.35 per cent Y-o-Y and 1.6 per cent Q-o-Q to Rs 11,57,171 crore. Domestic retail personal loans, on the other hand, improved 12.32 per cent on year to Rs 13,96,624 crore. Over the June quarter, retail loans climbed just 2 per cent. 

 

Of the personal loan pie, home loans were Rs 7,64,141 crore at the end of Q2 FY25, up 13.66 per cent on year and 3.3 per cent Q-o-Q. 

 

As regards deposits, SBI said its liabilities grew 9.13 per cent Y-o-Y and 4.4 per cent Q-o-Q to Rs 51.17 trillion. 

 

Domestic current account-savings account (CASA) deposits were Rs 19,65,899, up 4.24 per cent Y-o-Y and 2.69 per cent Q-o-Q. Domestic term deposits, meanwhile, were Rs 29,44,629 crore, resulting in a yearly rise of 12.5 pr cent and a sequential rise of 5.56 per cent. 

 

SBI's CASA ratio, thus, contracted 185 bps Y-o-Y/67 bps Q-o-Q to 40.03 per cent at the end of the quarter under study. 

 

SBI Q2 asset quality

On the asset quality front, State Bank of India's gross non-performing assets (GNPAs) stood at Rs 83,369 crore, down 4.14 per cent from Rs 86,974-crore GNPA reported at the end of Q2 FY24 and just 1 per cent over Rs 84,226-crore GNPA of Q1 FY25. 

 

NNPA, too, fell about 5 per cent over Q2 FY24 and 6 per cent over Q1 FY25 to Rs 20,294 crore.

 

As a percentage of loans, GNPA ratio 8bps Q-o-Q to 2.13 per cent, while NNPA ratio improved 4bps to 0.53 per cent.

 

The lender's provision coverage ratio (with AUCA) was 92.2 per cent, and without AUCA was 75.45 per cent.

 

SBI's total provisions and contingencies buffer (net of write-off) were Rs 4,505.7 crore in Q2 Fy25, up from Rs 115.28 crore seen in the corresponding quarter of the last fiscal year, and Rs 3,449.4 crore set aside in Q1 FY25.

 

Provisions, set aside especially for NPAs, were Rs 3,631 crore for the September quarter, up from 1,814.9 crore Y-o-Y but down from Rs 4,518 crore Q-o-Q.

 

"Slippage ratio for H1FY25 improved by 2 bps Y-o-Y and stands at 0.68 per cent. Slippage ratio for Q2 FY25 increased by 5 bps Y-o-Y and stands at 0.51 per cent. Credit Cost for Q2 FY25 stands at 0.38 per cent," SBI said in its statement.

 

Gross slippages at the end of the September quarter was Rs 4,951 crore, compared with Rs 8,707 crore Q-o-Q.

 

That apart, SBI's return on assets (RoA) and return on equity (RoE) for the half year stand at 1.13 per cent and 21.78 per cent, respectively. RoA, at 1.17 per cent for the quarter, increased by 16 bps Y-o-Y, SBI said.